Weekend Read: Practice Makes An Entrepreneur

GUEST MENTOR Jessica Jackley, co-founder of Kiva and advisor at Collaborative Fund: I was dragged to my first yoga class more than a decade ago by one of my best friends, Shannon. She was quite the evangelist, and after weeks of persistent prodding, she finally convinced me to join her. When I agreed to go to her favorite class on a Sunday morning in the Castro District of San Francisco, she squealed, hugged me, and jumped up and down; then, more serious, she grabbed me by the shoulders and said: “You will love this. It will change your life.”

We went to the yoga studio the following Sunday. The 90-minute class was mostly uncomfortable and confusing, and I accidentally kicked the guy behind me in the head during a transition into downward dog. Despite my awkwardness, at one point Shannon looked over at me and whispered, “You’re doing great!” and that was enough. I finished the class, and she had been right: I loved it. I wanted more. I came back the next week with her, and the following, even though she couldn’t come. I was addicted. Soon I had my own daily practice. Later I’d get certified as an instructor.

The more I did yoga, the stronger I got, the more my practice deepened, and the more I yearned to practice. Yoga did change my life. But I wouldn’t have had the guts to start without Shannon.

What does this have to do with women and entrepreneurship?

Like yoga, entrepreneurship is also something to be practiced, and the practice itself is the best way I know to become a smarter, stronger, better entrepreneur. The hardest part is starting.

We really need more women to start, and fast. Fewer women pursue entrepreneurial paths than men, and fewer women take their ventures as far as men do. Although 46% of the workforce and more than 50% of college students are female, only 35% startup business owners are women. The percentages get smaller as the companies get bigger; only 10% of Inc. 500 companies are women-led. Some research suggests women simply choose not to pursue entrepreneurial paths; for instance, many women emphasize work-life balance in a way that leads them to steer clear of the demands of launching a startup.

But myriad external barriers seem to simply make it harder for women than for men to become successful entrepreneurs of scalable companies. Women cite a lack of mentorship and a dearth of role models as major barriers. It’s more difficult for women to access capital; for example only 6.5% of privately-held companies that receive VC funding have women CEOs. Just 1.8% of women-owned businesses crack the $1 million revenue mark, versus 6.3% of businesses owned by men.

This is a shame. We badly need more women entrepreneurs. Companies with women in meaningful leadership roles have a greater chance at success than those without. Return on equity is higher. The likelihood of a successful exit is higher. And creating greater diversity by adding more women to a team does more than simply introduce new viewpoints or approaches; diverse groups outperform homogeneous ones, as multiple perspectives force more careful processing of information, which ideally leads to better solutions to problems.

While creating a more supportive environment for women entrepreneurs is of obvious importance, the invisible barriers that hold women back are just as significant. Chief among these internal barriers are fear of failure and a lack of confidence, according to a 2012 report that was just released a few weeks ago. How do those of us who want to see more women become entrepreneurs respond to that? How do we fight fear and confidence issues?

In my experience, nothing (not even yoga) has built my confidence more in the last decade than surviving the ups and downs of my own entrepreneurial journey. Nothing else has chipped away at my fears as quickly or permanently, or helped me identify and put risks in perspective, like doing a start-up has. At this point I’m sort of addicted to what this way of life – being an entrepreneur – gives me. I’m a convert. I’m a practitioner. A yogi of entrepreneurship, if you will.

Entrepreneurship isn’t just the goal, but the path as well. In my experience, it has been the single best way to build all of the qualities (more confident, less fearful, more risk tolerant) that, theoretically, would make a person more likely to become a successful entrepreneur. It’s just a matter of taking that first step.

When I reflect on what really helped me take those first few scary steps along my own path of entrepreneurship, I realize how significant the voices of encouragement of people like Shannon were to me. (In true form, Shannon was among the first handful of Kiva lenders. Of course.) The most valuable, catalytic resource I had at my disposal wasn’t, for instance, the perfect funding source – though, having experienced it both ways, it’s nicer to have adequate funding than not – but instead was the support of friends and family who believed in me and nudged me along. The most valuable asset I had were the voices of loved ones who convinced me that following my dreams and pursuing a riskier path was worth a shot. Who, in the most vulnerable moments along the way, were there to say, “You’re doing great!” and give me a hug. They got me to the starting line, and I borrowed their confidence to just begin.

Once I took those first few steps, each successive step was easier; the journey itself fueled me. Each step helped make me a less fearful, more confident person – and an increasingly capable, resilient entrepreneur.

Just like in yoga, the practice of entrepreneurship makes me stronger in a way that only doing the thing itself can.

We must increase the number of women entrepreneurs, of women CEOs, of women leaders in every field. Sometimes the last barriers standing are internal ones, and all it might take to overcome them is the support of a few good friends. If you know a woman who dreams of taking the plunge and beginning her entrepreneurial journey, go out of your way to encourage her to do so. Build her up. Cheer her on. Your well-timed words of support might be precisely what she needs to finally choose to get started. And once she’s begun, there’s no telling how far she can go.

Comments (5 of 7)

Thanks for the article. I wholeheartedly believe in what you're talking about and have seen this first-hand with women in business. Confidence and taking the first step is so crucial as is having a supportive network to remind you that you can do it. It is in this spirit, that I started the Girlfriend MBA - (http://www.girlfriendmba.com) a new kind of business program for women to get the skills, support and nudge they need to start and grow their businesses. Women are saying things like "It made me feel like I have something important to do here on this planet and that I really can do it." and I'm risking boldly on at least a weekly basis - often daily. And I'm teaching my daughters to risk boldly too." "It's a how-to guide to make your dreams a reality." It is truly amazing what can happen when someone feels supported, confident and believes in the possibiliites - and then is nudged to take a step...and then another one.

11:26 am September 17, 2013

Jennifer Smith wrote:

I read something the other day about a guy who started a business teaching cyclist how to ride down mountains or how to ride competitively (I was a little unclear about his focus). He had 2 people enlist his services in the first year. During year two he discovered a whole different audience interested in what he had to say and now has a national presence with his company. It showed me that you can start an obscure consulting firm and 2 clients in the first is a great start. Before reading this, I saw it as a failure and who would be interested in something so niche as his business.

3:48 pm September 16, 2013

Aassia Haq wrote:

Thanks for sharing your perspective Jessica. It rang true. A nice silver lining: where independent workers are concerned, it's a 50 50 gender split, and 14% of America's nearly 18 million independent workers aspire to build a bigger business. It's our belief that going solo is a great first learning step for women - these solopreneurs often become micropreneurs, and later perhaps big business owners, because they are able to stage growth and take learning at a pace that works. At our company we dubbed this path for women the third path. Here's an infographic about it in case you'd enjoy learning more. http://www.mbopartners.com/state-of-independence/women-and-independent-work.html

11:13 pm September 15, 2013

Dieverseitty wrote:

I strongly disagree with a few of your assertions. One of the bigger ones was the bit about diverse groups being more productive than homogenous groups. This too broad a statement. Are you saying that adding women creates diversity? What does that mean? Plus, it's been proven that diversity can create a rift in creativity because people are inherently biased against those that are not similar or alike.

The fact is women have every opportunity these days to start a company, just like a man, and most do not. How about chalking it up to nature?

11:34 am September 15, 2013

Jayasri wrote:

Dear Jessica,
This was a great article. Loved the way you related yoga and entrepreneurship. I am (almost) addicted to both and I can't agree more about the effect these two have on a person once they get started!
Sadly, the lack of women entrepreneurs is sometimes so evident that, more often than not I am the only female entrepreneur sitting among a bunch of males at startup events! It is the need of the hour to cite, support, mentor and encourage female entrepreneurs.
I am a second time entrepreneur - my latest being a web app named Enabli (www.Enabli.com) - that is doing awesome after its release last month. What I want to share here is the fact that being a 'women entrepreneur' has its advantages too - we have to learn to use it to our advantage. Well, the PR loves us women entrepreneurs, women leaders make better bosses, we also make better mentors because of our ability to relate. The list is endless.
As women, we are genetically programmed to share our thoughts, seek out opinions and take others approvals / opinions into consideration. Though this is good in some cases, it is more important for a woman entrepreneur to standup for herself. Be her own support system and cheer herself up. There WILL be ups and downs - but hey, it is all worth it.

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